Important FAQs
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Should I refinance my mortgage?

There can be several reasons to refinance. Here are 3 popular reasons:




Interest rates and the term of your mortgage can affect your decision.

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What are the various closing costs involved in a mortgage transaction?

Closing costs can be divided into 3 main categories:




You will be provided with an estimate of your closing costs soon after your application has been received. These estimates will change if your loan program or loan amount changes.

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How much equity do I need for a mortgage refinance?

Most refinance loan programs require some equity in your home to refinance. But, there are special programs that may offer more flexible requirements.


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Can I combine my first and second mortgages (equity line or loan) when I refinance?

If it has been at least 12 months since you secured the second mortgage (or had a withdrawal on an equity line) and other criteria are met, you may be able to consolidate the second mortgage with the first mortgage.

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Can I refinance if my home is for sale?

You can refinance as long as your home has not been for sale within the last 6 months.


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Will a prepayment penalty affect my refinance?

Prepayment penalties on your existing mortgage could make refinancing more costly. Check the details of your current loan agreement and be sure to factor in the cost of any prepayment penalty when you consider the benefits of refinancing.


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How long will it take to get prequalified for a refinance?

You can get a response in less than 10 minutes when you prequalify for a mortgage refinance. There are just a few easy steps involved in the prequalification process.
Add in form to click to here to prequalify


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Is an appraisal required?

Some form of valuation, whether an appraisal or another form, is required on every loan. There are varying degrees of valuation, depending on the loan.


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Can I get a copy of my appraisal?

Should an appraisal be required, as a standard business practice we provide each customer with a copy of the completed valuation.


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How does a refinance closing work?

The refinance closing is handled the same way your loan was closed when you first purchased your property. After your loan is approved, you’ll receive copies of documents you’ll need to sign at closing. Depending on where you live, the closing takes place at the office of a closing agent or it could involve a meeting where all related parties are present.


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What are the various closing costs involved in a mortgage transaction?

Closing costs can be divided into 3 main categories:





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How much home can I afford?

The amount of home you can afford is based on the amount of mortgage loan you can comfortably handle. Generally, the amount of mortgage you qualify for is based on 3 factors:


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What types of mortgage loans are available?

There are many types of mortgages available, including mortgages tailored for first-time home buyers, low-income home buyers, and buyers who need very large loan amounts (those loans are often called jumbo loans).

The most general concepts for types of loans are as
follows:





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What are the benefits of a 15-year mortgage?

A 15-year mortgage allows you to own your home in half the time of a conventional 30-year mortgage. Although payments are higher with a 15-year mortgage, you’ll save a considerable amount of money in interest over the life of your loan and build equity faster.


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Are there any special programs for first-time home buyers?

Yes. We offer special mortgage programs for individuals who meet certain income requirements, who are financing property in certain low-income areas, or who meet other special requirements.
Such loans offer:






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What are the tax advantages of owning a home?

Income tax reduction. In the early years of a mortgage, most of your monthly payment covers interest on the mortgage. In most cases, the mortgage interest (and property tax) may be itemized and deducted from your taxable income, lowering your overall tax bill.

Therefore, your after-tax cost of homeownership may be lower than renting. There may be tax implications if you later sell the home at a profit. Consult your tax advisor for more information.

Tax deductible borrowing power. As your home equity increases, you can borrow against it for almost any need with a home equity loan or line of credit.

Because your home equity loan or line of credit is backed by the equity in your home, you may be able to deduct that interest from your taxable income. This could lower your final tax bill. Consult your tax advisor and IRS Publication 936 (Mortgage Interest Deduction) regarding deductibility of interest.


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Should I get prequalified for a mortgage before I shop for a home?

Getting prequalified for your mortgage is an important step before you shop for a home. It tells you how much home you can buy and makes applying for your mortgage easier. A mortgage prequalification can also give you additional leverage with a seller in negotiating the best possible terms of the sale.

You can get a response in less just minutes when you prequalify for a mortgage with First Penn Financial Group. There are just a few easy steps involved in the prequalification process.


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What’s an impound/escrow account?

An impound/escrow account is an account set up by a lender to hold funds that are set aside for the payment of property taxes and insurance. In addition to the principal and interest payment on your mortgage loan, you may elect—or be required—to put aside additional funds each month in an impound/escrow account to pay for property taxes and mortgage and hazard insurance. The lender holds the money in an impound/escrow account and makes the payments from the account when they are due.


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What can I do if I have credit problems?

Having credit problems doesn’t automatically mean you can’t become a homeowner. We can help you with your questions and tell you about special loans for people with credit challenges.

You can start taking steps now to help improve your credit rating and your qualifications for loan approval. Here are a few quick tips that should help:



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